Do you really want a Groupon Training Experience?

[danvolker]

I buy Groupons all the time. I also regularly go out to nice restaurants, ring up $100+ tabs with my girl, and tip 20% (what we're guilt tripped into in Oregon). The vast majority of my friends can make the same claims and also buy Groupons. To say that Groupon customers are cheap is just ignorant, to say we're the people who steal Splenda/Equal is just rude. Regardless of Groupon, we have plenty of dive shops in my area with "terrible long term problems with no customer loyalty and with poorly skilled divers that are constantly dropping out of diving", so this is again, not a Groupon issue. This is the modern world. Younger people may want to try diving without dropping $400 on it. My person rule is if it's over $100 (anything), I think about it. I weigh the opportunity cost. If I can get the same $400 thing for $200, am I stupid to do it? Groupon is simply another way of marketing, just because you use it doesn't mean your service or customers are worthless crap.



If you think a company discounting their product means they don't value it and therefore you shouldn't either, you may want to take a look through your local store coupons and realize with that mentality you shouldn't be buying anything.

Sorry you find me so rude and ignorant.
However, if you get into marketing at a large national level ( think Ford, GM, Dove....National sized advertisers with well defined demographics) , then you create lifestyle segments and decide which are best for your product, and which are not ( along with what medias are best to reach each sub-group, and what creative will be most effective in any given group) ...
It does not matter if you and your friends are high dollar consumers and yet you choose to use Groupon...the masses that do-- will statistically fall into a group with buying patterns that would not be likely to buy a Corvette or stay at a 5 Star Hotels.....This is about how hundreds of thousands, or how millions of people will act..not about how a group of 6 will act.

I am just saying that dive shops should look at the possible market as being composed of many lifestyle groups, and some groups will be far more sustainable in the long term.

 

[chillyinCanada]

Dan you've shown us this video before. How do you know it was a Groupon class?

 

[scubamarketing]

Groupon demographics:

67% earn more than $50K annually
66% are female
80% have a college degree and 30% have a graduate degree
67% are 18-45
82% of customers would not have gone to the merchant if not for the Groupon deal
76% of customers spend beyond the value of the deal
91% of customers plan to return to the Groupon merchant in the near future
81% of customers have referred someone to the business

Sounds like a pretty decent target market to me.

 

[danvolker]

Dan you've shown us this video before. How do you know it was a Groupon class?

Because the first time I posted this, it got back to the dive shop involved...and this instructor actually got fired.
This particular shop did not like Groupon much....there is a lot more to the story than I can share....and there was a considerable amount of noise in the area about what shops were doing this, and what it meant to the instruction quality of the area.

There are one or 2 shops in the South Fl area, that do use Groupon, and still manage to run quality classes.....the problem is, there are too many others that were just bordering on quality instruction before, and groupon would push them over the line with the need to process too many people with insufficient revenue to do so.

---------- Post added March 12th, 2014 at 04:25 PM ----------

Groupon demographics:

67% earn more than $50K annually
66% are female
80% have a college degree and 30% have a graduate degree
67% are 18-45
82% of customers would not have gone to the merchant if not for the Groupon deal
76% of customers spend beyond the value of the deal
91% of customers plan to return to the Groupon merchant in the near future
81% of customers have referred someone to the business

Sounds like a pretty decent target market to me.

I would question the validity of these claims, particularly if provided by Groupon....How about you get it from Simmons Research or Scarborough Research?
I can guarantee you that no Ad Agency of any merit would use the claims Groupon would make....
And...just so you know....making more than $50k annually ( meaning a big population making 50k to 60k), IS potentially in a lifestyle cluster that would steal Splenda from restaurants That is not to say that this is true of all with this income--and that is not what such a parameter indicates. Even with a PRISM Cluster for people living in a Furs and Stationwagons type neighborhood....with a high degree of similarity in the families and behaviors there--many are not driving station wagons or wearing furs.....this is marketing shorthand....as you must know.

 

[WB2GLP]

We found that customers with Groupon codes were very tech savvy. (Who would figure that, right?) After redeeming their code for Open Water Class, they used our store to window shop and try on the basic gear required for class. They would scan the barcodes of the products they liked using their i-phone and a price comparison app and then purchased it online before the pool sessions began. As the instructor, the training experience for the Groupon student was the same as any other student. I got paid either way. The only time it became an issue was when frugal students who purchased poorly fitting gear online experienced issues in the pool. We couldn't simply say, "go into the shop and exchange it for something else."

I know the shop stopped using Groupon because the loss leader strategy wasn't producing any gain after a dive season (We're talking Jersey not FL or CA)

 

[scubamarketing]

Groupon demographics:

67% earn more than $50K annually provided by Axciom
66% are female provided by Axciom
80% have a college degree and 30% have a graduate degree provided by Axciom
67% are 18-45 provided by Axciom
82% of customers would not have gone to the merchant if not for the Groupon deal ForeSee Groupon Customer Satisfaction Study, October 2013
76% of customers spend beyond the value of the deal Internal redemption data, January 2013–August 2013
91% of customers plan to return to the Groupon merchant in the near future ForeSee Daily Deal Commentary, February 2012
81% of customers have referred someone to the business ForeSee Groupon Customer Satisfaction Study, October 2013

Sounds like a pretty decent target market to me.

So the only stat provided by Groupon is the one about people spending 76% more than the value of the deal.

Simmons Market Research Bureau says: "Digital coupon printers are 35% more likely to have a household income of $75K+ compared to the general population. They are also more educated. Digital coupon printers are 17% more likely to have college or advanced degrees than the general population."

Bottom line: Groupon and the like aren't going away. It may or may not work in your specific market, but it may work fine in mine. Either figure out how to use it and adapt, or sit around on SCUBA forums complaining about it.

FWIW, I don't sell anything via Groupon despite having been approached by their sales people countless times. It doesn't make sense for our business. But I know several LDS's and independents who have used it, put out quality students, and would use it again.

 

[danvolker]

In some of the restaurants in South Fla that are not so far from the Senior Living areas like Century Village.... You will see "Early Bird Specials".
If it was your bad luck to be in one of these restaurants when a 50 person line of these seniors rushed in, the first thing you would see is each one grabbing for bread on the table, and shoving it in to their mouths as fast as they could--to get "their share"...then, while mouths still full and chewing, they proceed to demand the waiter get them all manners of free things, that they have LEARNED are available....they are quite sharp in how they compare notes with all others in their group, regarding any way possible to get free or discounted anything. As the waiter gets covered with "saliva covered bits of bread" , and struggles to maintain composure, the issue of marketing and Groupon may beg to be revisited.....
Of course, these people know of Groupon, and how to use it for all it is worth.

 

[iluvtheocean]

most of the groupons i see for scuba -- tend to be either for a discover scuba or OW --- neither of which means you will definitely get an inferior course. discovery is just that... and if handled correctly will segue into a full OW course. a discounted OW? so you lose a bit of money on the OW -- if it's done right, -- you'll get an AOW or more out of it and a repeat/loyal customer. Groupon like any other discount is a hook to get people to come to you and buy from you. Good customer service keeps them.


We use groupon for various stuff such as restaurants, merch, etc. I shop online & buy from my local LDS (and will recommend them to people due to their excellent customer service)

 

[chillyinCanada]

Geez Dan there you go again.

The reason I agreed with the stats set out above is because I've been a customer of groupon equivalent a number of times and fit into almost every statement as true. And I'll continue to take the advantage offered in many. It is still left to me to determine if I want to give my custom to certain companies or not.

 

[danvolker]

Geez Dan there you go again.

The reason I agreed with the stats set out above is because I've been a customer of groupon equivalent a number of times and fit into almost every statement as true. And I'll continue to take the advantage offered in many. It is still left to me to determine if I want to give my custom to certain companies or not.

C'MON CHILLY,
You have to admit I created a great "visual image" of a Groupon group ....There has to be some "fun" in these discussions

You know perfectly well I am not "aiming" this at anyone on SB.